Hitting home fast

while I was talking about other hoods, just recently glanced at Zillow for my hood. The carnage is unbelievable now. Just within a few months. zillow is pretty good at tarcking values, and many houses over the years have sold veryy near the prior price estimates on Zillow. A house that was valued at over $1,000,000 is now around $700,000. $300,000 of "equity" wiped out in mere months. And only a few blocks away. Mine is not nearly worth that. But no place immune from this. Amazing ! P.S. Current owner paid $992,000 on 6/16/06. Can you spell U-P-S-I-D-E-D-O-W-N ? He won't ever recover, unless he lives there until he dies.

Edited by nimblebear, 15 January 2008 - 12:29 AM.

6/16/06. That was the "epicenter" of the real estate price peak, obscenely overpriced, imho.

He'll have to sell it before he dies to pay for re taxes and insurance.

while I was talking about other hoods, just recently glanced at Zillow for my hood.

The carnage is unbelievable now. Just within a few months. zillow is pretty good at tarcking values, and many houses over the years have sold veryy near the prior price estimates on Zillow.

A house that was valued at over $1,000,000 is now around $700,000. $300,000 of "equity" wiped out in mere months. And only a few blocks away. Mine is not nearly worth that.

But no place immune from this.

Amazing !


P.S. Current owner paid $992,000 on 6/16/06.

Can you spell U-P-S-I-D-E-D-O-W-N ?

He won't ever recover, unless he lives there until he dies.

Where is your hood? Not seeing much devalution in Newport Beach yet. This area is
seriously leveraged on real estate though. Wouldn't doubt a big drop if a recession hits.
I was planning on buying some properties when an earthquake occurs. That's usally
a good bet as tragic as it might be.

D

I dunno, if it averages 2.5% appreciation, he'll get back even in about 15 years. And he's gotta live someplace... My thinking is that it falls more first, but that there will be some big appreciation years too over the next 10.

What is going to be an unknown until some time after the bottom is in is what the demand will be for housing stock. A lot of building was going on in areas that were farm lands and otherwise not residential in the last few years due to demand that was supercharged by all of the exotic mortgages and the suicidal and just plain fraudulent mortgagees/mortgagors out there. The bar on qualifying for a mortgage will be raised to something reasonably responsible while credit scores will be dropping due to the affect of things in the current economic situation.

I have posted a site below for another home price "evaluator." Like Zillow, you don't have to register, give any information about yourself, etc. Like Zillow, it should only be used as a ball park guide and not taken literally. I find Zillow to be, at times, totally off the wall in their evaluation of some homes so, I check against this site as well for balance. Many times both sites are very similar in their pricing of a certain home I am looking at, nonetheless, I just use these sites for "enterainment purposes only." I suggest you do the same.

http://www.realestat...om/home-values/